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Property and pull outs

07 Jul 2016, 08:00 | Posted by: Paul Donovan | Tags: Paul Donovan

A few more UK property funds have suspended withdrawals in the wake of the referendum decision. This is not, however, a systemic crisis in that it is neither a crisis nor is it systemic. At the moment this represents a liquidity problem for investors in UK property funds.

Sterling's weakness is still gathering headlines on fears foreign direct investment will disappear. These concerns do, however, tend to focus on the headline "build a factory" FDI figures, not the more mundane but important "retained earnings" sort of FDI.

The US Fed minutes showed the central bank to be concerned about job creation and external shocks. In light of subsequent events this is consistent with a slower pace of tightening (tightening because of the growing US inflation problem, slower because of external risks).

UK industrial production will be disregarded. German industrial production was unexpectedly weak – it is a volatile series, but markets are inclined towards the pessimistic at the moment. US ADP payrolls make it out as well.